US Federal Reserve to Re-evaluate 'Toxic' Bitcoin Basel Treatment for Major Banks
US Federal Reserve to Re-evaluate 'Toxic' Bitcoin Basel Treatment for Major Banks
The Federal Reserve is set to initiate a significant review of the Basel III framework, specifically its existing treatment of Bitcoin for major US banks. The current rules, which impose a substantial 1,250% risk weight, effectively render Bitcoin 'untouchable' for these financial institutions. This upcoming debate could lead to crucial changes in how American banks are allowed to interact with Bitcoin under capital regulations.
The Federal Reserve is set to open a new chapter in the US Basel III debate next week, and for Bitcoin policy advocates the stakes are unusually clear: whether the largest American banks will keep inheriting a capital regime that treats bitcoin as effectively untouchable. The fight centers on Basel’s 1,250% risk weight for certain [...]